Testimony of Secretary Janet Napolitano Before the United States Senate Committee on Homeland Security and Governmental Affairs, "DHS Fiscal Year 2012 Budget Request"

Release Date:

February 17, 2011

Dirksen Senate Office Building

Chairman Lieberman, Ranking Member Collins, and Members of the Committee:

Let me begin by saying thank you to this Committee for the strong support you have provided me and the Department over the past two years. I look forward to continuing to work with you in the coming year to protect the homeland and the American people.

I am pleased to appear before the Committee today to present President Obama's Fiscal Year (FY) 2012 Budget Request for the Department of Homeland Security (DHS).

The demands on DHS have never been greater and the threats we face pose new challenges that require an innovative and focused response. Today's threat picture features an adversary who evolves and adapts quickly and who is determined to strike us here at home – from the aviation system and the global supply chain to surface transportation systems, critical infrastructure, and cyber networks. The Department's FY 2012 Budget allows us to continue to meet these evolving threats and challenges by prioritizing our essential operational requirements – while reflecting an unprecedented commitment to fiscal discipline that maximizes the effectiveness of every security dollar we receive.

Reflecting the current economic environment, we are preserving essential frontline operations and bolstering our operational strength by decreasing administration and overhead, including the overall budget for the Office of the Secretary and Executive Management. All DHS Components identified reductions associated with the Efficiency Review initiatives currently underway as well as administrative savings totaling more than $800 million to strengthen mission critical activities across the Department. Savings were accomplished through efficiencies in acquisition, asset and real property management as well as employee vetting/credentialing, hiring/on-boarding and information technology; and administrative savings through reductions to professional services contracts, printing, supplies and materials, travel, and training. The Department also proposes to delay construction of the Federal Emergency Management Agency (FEMA) headquarters at St. Elizabeths as well as the deferral of other office co-locations, and building maintenance and enhancements to prioritize frontline security operations.

FY 2012 Budget Request

DHS's FY 2012 budget request is the culmination of a major, first of its kind effort undertaken by the Department to align DHS resources with a comprehensive strategy to meet our Nation's homeland security needs. Last year, DHS completed the first ever Quadrennial Homeland Security Review (QHSR), which established a unified, strategic framework for homeland security missions and goals, as well as the first ever Bottom-Up Review (BUR), which aligned DHS' programmatic activities and organizational structure to better serve those missions and goals. The third and final step of this process is the FY 2012 budget submission, which begins the next phase in strengthening DHS efforts to ensure a safe, secure, and resilient homeland.

This process identified six DHS missions, each of which is strengthened by this budget:

Mission 1: Preventing Terrorism and Enhancing Security – Protecting the United States from terrorism is the cornerstone of homeland security. DHS's counterterrorism responsibilities focus on three goals: preventing terrorist attacks; preventing the unauthorized acquisition, importation, movement, or use of chemical, biological, radiological, and nuclear materials and capabilities within the United States; and reducing the vulnerability of critical infrastructure and key resources, essential leadership, and major events to terrorist attacks and other hazards.

Mission 3: Enforcing and Administering Our Immigration Laws – DHS is focused on smart and effective enforcement of U.S. immigration laws while streamlining and facilitating the legal immigration process. The Department has fundamentally reformed immigration enforcement, focusing on identifying and removing criminal aliens who pose a threat to public safety and targeting employers who knowingly and repeatedly break the law.

Mission 4: Safeguarding and Securing Cyberspace – By statute and presidential directive, DHS has the lead for the Federal Government to secure civilian government computer systems and works with industry and state, local, tribal and territorial governments to secure critical infrastructure and information systems. DHS analyzes and reduces cyber threats and vulnerabilities; distributes threat warnings; and coordinates the response to cyber incidents to ensure that our computers, networks, and cyber systems remain safe.

Mission 5: Ensuring Resilience to Disasters – DHS provides the coordinated, comprehensive federal response in the event of a terrorist attack, natural disaster or other large-scale emergency while working with federal, state, local, and private sector partners to ensure a swift and effective recovery effort. The Department's efforts to build a ready and resilient Nation include fostering a community-oriented approach; bolstering information sharing; improving the capability to plan; and providing grants and training to our homeland security and law enforcement partners.

Mission 6: Providing Essential Support to National and Economic Security – DHS leads and supports many activities that provide essential support to national and economic security including, but not limited to: maximizing collection of customs revenue; maintaining the safety of the marine transportation system; preventing the exploitation of children; providing law enforcement training; and coordinating the Federal Government's response to global intellectual property theft. DHS contributes in many ways to these elements of broader U.S. national and economic security while fulfilling its other five homeland security missions.

The following are highlights of the FY 2012 Budget:

Preventing Terrorism and Enhancing Security

Advanced Imaging Technology (AIT): $105.2 million and 535 positions are included for the Transportation Security Administration (TSA) to purchase, install and operate 275 AITs at airport checkpoints. The FY 2012 request, combined with prior requests, will result in 1,275 AIT units deployed by the end of 2012. The requested funding covers the cost of new Transportation Screening Officers and managers to operate the new AITs, as well as the associated support and airport management costs. Continuing to increase AIT deployments while ensuring privacy safeguards are in place is critical to address the current threat by safely screening passengers for metallic and non-metallic threats – including weapons, explosives and other objects concealed under layers of clothing.

Explosives Detection Systems (EDS): $273 million is requested to support the recapitalization and deployment of state-of-the-art EDS for checked baggage to efficiently screen baggage for explosives, reducing the number of re-scans and physical bag searches. Beginning in FY 2012, over 800 EDS in our largest airports will exceed their planned 10-year service life.

Assistant Field Security Directors-Law Enforcement (AFSD-LEs): Requested funding of $22.5 million supports 82 AFSD-LEs currently deployed and provides 22 additional AFSD-LEs for major airports, where they serve as the primary liaison to local law enforcement as AIT expansion continues.

Federal Air Marshal Service (FAMS): The FY 2012 Budget requests funds to maintain the FAMS surge deployment levels for domestic and international flight coverage that began in response to the attempted terrorist attack on December 25, 2009. Members of the FAMS, TSA's law enforcement entity, are deployed on flights around the world and the United States based on risk in order to detect, deter, and defeat hostile acts targeting U.S. air carriers, airports, passengers, and crews.

Enhanced Watchlist Vetting: $12.4 million is proposed for maintaining the expanded watchlist vetting initiative, which, through the Secure Flight program, enables TSA to identify individuals who may present a threat to passenger air travel. Through Secure Flight, TSA pre-screens passenger name, date of birth, and gender against terrorist watchlists before passengers receive their boarding passes. In addition to facilitating secure travel for all passengers, the program helps prevent the misidentification of passengers who have names similar to individuals on government watchlists.

Immigration Advisory Program (IAP): A total request of $14.1 million will permit the IAP to expand in Paris, Abu Dhabi, Dubai, and Amman. IAP is a part of Custom and Border Protection's (CBP) layered risk-based security approach, which includes working with international partners to post CBP officers at foreign airports and use advanced targeting and passenger analysis information to identify high-risk travelers at foreign airports before they board U.S.-bound flights.

Behavior Detection Officers (BDOs): The FY 2012 Budget request of $236.9 million funds 3,336 BDOs, which includes 350 new positions. BDOs serve as an additional layer of security in airports by providing a non-intrusive means of identifying individuals who may pose a risk of terrorism or criminal activity.

Canine Teams: Requested funding of $125.7 million allows TSA to sustain the deployment of 900 canine teams supported by reallocations made under the continuing resolution, providing an important layer of security to complement passenger checkpoint screening at airports, assist in air cargo screening and enhance security in the mass transit environment.

Visible Intermodal Prevention and Response (VIPR) Teams: $109 million requested supports 37 VIPR teams and includes12 new multi-modal VIPR Teams proposed in the FY 2012 request in addition to the 10 existing teams in Aviation and the 15 VIPR teams dedicated to surface transportation added in the FY 2010 budget. VIPR teams are comprised of personnel with expertise in inspection, behavior detection, security screening, and law enforcement for random, unpredictable deployments throughout the transportation sector to deter potential terrorist and criminal acts.

Passenger Security Fee: The FY 2012 Budget reflects a proposal to increase the Aviation Passenger Security Fee by $1.50 per enplanement beginning in 2012. The Aviation Passenger Security fee has not changed since the TSA was established following the events of 9/11, even though the overall cost of aviation security has grown by more than 400 percent. The Administration's proposal makes progress towards fulfilling the intent of the Aviation and Transportation Security Act to cover the costs of aviation security through fees and not by the general taxpayers.

BioWatch Gen 1/2: $90 million is requested to continue operating the Gen 1/2 BioWatch detection network, a federally-managed, locally-operated, nationwide bio-surveillance system designed to detect the intentional release of aerosolized biological agents in more than 30 cities.

BioWatch Gen-3: The FY 2012 Budget provides $25 million to continue Gen-3 development, which is expected to significantly reduce the time between a release of a biothreat agent and confirmation of that release by BioWatch technology. Operational Testing and Evaluation of Gen-3 technology will begin in one of four test cities in FY 2012 with full deployment expected in FY 2014.

Securing the Cities: $27 million is requested for Securing the Cities to continue the build-out of the domestic portion of the Global Nuclear Detection Architecture, the multi-layered system of detection technologies, programs, and guidelines designed to enhance the Nation's ability to detect and prevent a radiological or nuclear attack in our highest risk cities.

Radiological/Nuclear Detection Systems: The FY 2012 Budget requests $57 million for the procurement and deployment of Radiation Portal Monitors and Human Portable Radiation Detection Systems, providing vital detection equipment to CBP and the U.S. Coast Guard to scan for radiological and nuclear threats.

Countermeasures and 2012 Presidential Candidate Nominee Protection: The FY 2012 request funds critical Secret Service operations and countermeasures to protect the first family and visiting dignitaries, including the 2012 presidential campaign and three anticipated National Special Security Events (NSSEs). The budget also restores the Secret Service's base funding – supporting the replacement of protective equipment, vehicles, training of personnel, and other infrastructure to allow the Secret Service to improve the execution of its protective and investigatory missions.

National Network of Fusion Centers: The FY 2012 Budget expands support for the national network of fusion centers in order to provide state and local law enforcement with the tools they need to address threats in their communities. The request focuses on integrating and coordinating cross-Department and cross-government interaction with fusion centers focused on enhancing baseline capabilities.

State and Local Law Enforcement Training: The FY 2012 Budget provides funding to train 64,000 individual federal, state, and local law enforcement personnel through the Federal Law Enforcement Training Center and its total budget of $276 million.

National Bio and Agro Defense Facility (NBAF): $150 million is requested to begin construction of the NBAF, which will serve as a new, state-of-the-art biosafety level 3 & 4 facility. Work performed at NBAF will lead to the development of vaccines and anti-virals and enhanced diagnostic capabilities for protecting our country from numerous foreign animal and emerging diseases.

Securing and Managing Our Borders

CBP Law Enforcement: The FY 2012 Budget supports 21,370 Border Patrol agents and 21,186 CBP officers at our ports of entry who work 24/7 with state, local, and federal law enforcement in targeting illicit networks trafficking in people, drugs, illegal weapons, and money. This reflects the largest deployment of law enforcement officers to the front line in the agency's history. The request annualizes positions supported by the FY 2010 Emergency Border Security Supplemental for the Southwest Border, including 1,000 Border Patrol agents and 250 CBP officers. Funding is provided to support 300 new CBP officers above the FY 2011 Budget and additional canine assets to support Port of Entry operations. The request supports the mobile response surge teams created with the Supplemental funding to respond rapidly to emergent situations without depleting Border Patrol staffing from other locations.

New Southwest Border Technology: $242 million is requested to support the continued deployment of proven, effective surveillance technology along the highest trafficked areas of the Southwest Border. Funds will be used to procure and deploy commercially available technology tailored to the operational requirements of the Border Patrol, distinct terrain, and population density of each border region. These funds will allow CBP to fully deploy a mix of Integrated Fixed Towers and other mobile equipment in three of the five Border Patrol Stations' areas of responsibility in Arizona.

Northern Border Technology: The request includes $55 million to support investments in technology systems which address security needs for the Northern Border maritime and cold weather environment, as well as innovative technology pilots. It will also deploy proven, stand-alone technology that provides immediate operational benefits. These demonstrations and deployments explore how best to integrate various sensors, border security organizations, and mission operations in order to optimize border security in this challenging environment.

CBP Journeyman: The request includes $229 million to fully fund the increase in journeyman grade level for frontline CBP officers, Border Patrol agents, and CBP agricultural specialists from GS-11 to GS-12.

Tactical Communications (TACCOM): The FY 2012 Budget includes $40 million to continue the transition of the TACCOM program to a robust, open architecture system that will increase interoperability with other law enforcement, expand coverage, and improve agent safety in the Houlton, El Paso, Laredo, and Rio Grande Valley sectors.

National Targeting Center-Passenger (NTC-P): A total of $47 million is requested to enhance CBP's ability to interdict dangerous individuals or terrorists traveling from foreign locations before boarding flights destined for the United States. The funds will be used to hire additional staff and implement enhancements in targeting priorities.

U.S. Coast Guard Recapitalization: The FY 2012 request fully funds the fifth National Security Cutter (NSC), supports 40 Response Boats and six Fast Response Cutters, as well as a sizable investment in the renovation and restoration of shore facilities. The budget also provides resources to ensure that the Coast Guard's aviation fleet is mission-ready through the acquisition of two Maritime Patrol Aircraft, one HH-60 helicopter, and conversion and sustainment projects of multiple aircraft. Funding for the NSC underscores the Department's support of this program which is important to the Coast Guard's long-term recapitalization effort and, most importantly, to allow the Coast Guard to replace its aged, obsolete High Endurance Cutter fleet as quickly as possible. The total request for U.S. Coast Guard Acquisition, Construction, and Improvements is $1.4 billion.

Maritime Safety and Response: $115.5 million remains in Coast Guard's base resources for 11 Maritime Safety and Security Teams and their associated 921 personnel, who conduct port security activities and provide support to NSSEs.

Enforcing and Administering our Immigration Laws

Detention Beds: The FY 2012 Budget increases U.S. Immigration and Customs Enforcement (ICE) Custody Operations funding by $157.7 million to support 33,400 detention beds and remove more than 200,000 criminal aliens in FY 2012.

Detention Reform: ICE plans to continue building on its detention reform efforts in FY 2012 by improving detainee access to quality health care, reducing the average length of stay, and facilitating access to family members and legal representation by adding functionality to the recently released online detainee locator system.

Worksite Enforcement: Requested funds continue the Department's focus on worksite enforcement, promoting compliance with worksite-related laws through criminal prosecutions of egregious employers, Form I-9 inspections, civil fines, and debarment, as well as education and compliance tools.

E-Verify: The FY 2012 request continues support for E-Verify operations and enhancements, including continued funding for new monitoring, compliance and outreach positions necessitated by program expansion. The continued success of E-Verify demonstrated by recent independent reports reflect the Administration's commitment to smart, tough, and effective strategies that build a strong foundation upon which immigrants can exercise their rights and responsibilities as Americans.

Secure Communities: A total of $184 million is requested for Secure Communities – which uses biometric information and services to identify and remove criminal aliens in state prisons and local jails. The $64 million program increase will expand deployment to 96% of all jurisdictions nationally in FY 2012 and provide resources to confirm the identification of an estimated 199,000 more criminal aliens through interoperability in FY 2012 than FY 2010 and transport more than 44,000 criminal aliens from state and local jails into the custody of ICE following the completion of their sentences. ICE will work with DHS's Office of Civil Rights and Civil Liberties and the Department of Justice to develop a robust oversight and evaluation process of Secure Communities and to provide training to state and local law enforcement. Secure Communities is on track for nationwide deployment by 2013.

Visa Security Program: The Budget requests $29 million to continue the Visa Security Program at current locations. This program enhances national security by preventing terrorists, criminals, and other ineligible applicants from receiving visas.

Immigrant Integration: The FY 2012 request expands U.S. Citizenship and Immigration Services' (USCIS) effort to support immigrant integration efforts, including funding for new programs supporting English language acquisition and citizenship education.

SAVE: The FY 2012 request continues support for USCIS SAVE operations and enhancements to assist state, local, and federal agencies in determining individuals' eligibility for public benefits based on their immigration status.

USCIS Business Transformation: The FY 2012 request continues the multi-year effort to transform USCIS from a paper-based filing system to a customer-focused electronic filing system.

Safeguarding and Securing Cyberspace

Federal Network Protection: $233.6 million is requested to expedite the deployment of EINSTEIN 3 to prevent and detect intrusions on computer systems and to upgrade the National Cyber Security Protection System, building an intrusion detection capability and analysis capabilities to protect federal networks.

Federal IT Security Assessments: A total of $40.9 million in requested funds will support the Department's efforts to strengthen Federal Network Security of large and small agencies by conducting an estimated 66 network assessments to improve security across the Federal Executive Branch.

Cybersecurity Workforce Needs: $24.5 million is proposed to provide high-quality, cost-effective virtual cybersecurity education and training to develop and grow a robust cybersecurity workforce that is able to protect against and respond to national cybersecurity threats and hazards.

Cyber Investigations: The FY 2012 Budget continues to support cyber investigations conducted through the Secret Service and ICE, targeting large-scale producers and distributors of child pornography and preventing attacks against U.S. critical infrastructure through Financial Crimes Task Forces.

Cyber Mission Integration: The FY 2012 request includes $1.3 million to enable DHS to coordinate national cyber security operations and interface with the U.S. Department of Defense's (DOD) National Security Agency (NSA) at Fort Meade, Maryland. This funding will support a landmark memorandum of agreement signed by Secretary Napolitano and Secretary of Defense Robert Gates that aligns and enhances America's capabilities to protect against threats to critical civilian and military computer systems and networks.

Cybersecurity Research: The FY 2012 request includes an increase of $18 million for the Comprehensive National Cybersecurity Initiative to support research and development projects focused on strengthening the Nation's cybersecurity.

Ensuring Resilience to Disasters

State and Local Grants: The FY 2012 request sustains federal funding for state and local preparedness grants totaling over $3.8 billion, highlighting the Department's commitment to moving resources out of Washington, D.C. and into the hands of state and local first responders who are often best positioned to detect and respond to terrorism, other threats, and natural disasters.

Assistance to Firefighters Grants: The FY 2012 request includes $670 million. Included in this amount are $420 million for Staffing for Adequate Fire and Emergency Response (SAFER) Grants to rehire laid off firefighters and retain veteran first responders – totaling 2,300 firefighter positions – and $250 million for equipment, training, vehicles, and related materials.

Disaster Relief Fund (DRF): $1.8 billion is requested for the DRF to allow FEMA to continue to address the impacts of a disaster on individuals and communities across the Nation. The DRF provides a significant portion of the total federal response to victims in presidentially declared disasters or emergencies.

Regional Catastrophic Event Planning: $8.5 million is requested to continue development of catastrophic plans, with a focus on plans for response to biological events and earthquakes.

National Exercises: FEMA's participation in National Level Exercise-12, an exercise to test FEMA's ability to respond to a catastrophic cyber attack, is funded with $3 million through the request.

Emergency Management Oversight: The FY 2012 request includes $20 million for the Office of the Inspector General to continue its Emergency Management Oversight operations.

Providing Essential Support to National Security and Economic Security

Patrolling the Exclusive Economic Zone: The Coast Guard patrols the U.S. Exclusive Economic Zone boundary areas to reduce the threat of foreign poaching of U.S. fish stocks and ensure compliance with international living marine resource agreements. The budget includes $47 million to extend the service life of five Medium Endurance Cutters critical in support of this mission.

U.S. Coast Guard Staffing: The request strengthens the Coast Guard's operational capacity by funding a total of 50,682 civilian and military personnel in FY 2012.

Enhancing Marine Environmental Protection and Response: The FY 2012 Budget requests $225.2 million and 1,362 FTE to enable the Coast Guard to conduct Marine Environmental Response. This includes 87 new environmental response personnel and creates the Coast Guard's first Incident Management Assistance Team, a highly trained team that will be deployed rapidly to augment the Coast Guard command structure when an incident of national significance occurs.

Investigate Cultural Antiquity Trafficking and Coordinate Repatriation: The FY 2012 Budget continues to support ICE seizures and repatriation of cultural property, art and antiquities illegally imported into the United States and the investigation of illegal trafficking of artwork, especially works that have been reported lost or stolen.

Forensic Support for Missing and Exploited Children: Funding is requested for the Secret Service to provide forensic support to the National Center for Missing and Exploited Children, which provides state of the art forensics support for investigations involving missing and exploited children and grant funds for activities related to the investigations of missing and exploited children.

Collect Customs Revenue: Funds are requested to support CBP's role as a revenue collector for the U.S. Treasury – customs revenue remains the second largest source of revenue for the U.S. government. Customs and Border Protection has set revenue collection as a Priority Trade Issue to ensure effective internal controls that protect the duties and taxes (over $29 billion in 2009) collected for the U.S. Government.

Protect U.S. Intellectual Property Rights: The FY 2012 Budget request funds to support CBP's enforcement program to prevent trade in counterfeit and pirated goods, and enforce exclusion orders on patent-infringing and other Intellectual Property Rights violative goods. The ICE HSI Intellectual Property Rights (IPR) Center investigates the smuggling and distribution of counterfeit goods and products that pose risks to public safety and security. Counterfeit pharmaceuticals and critical technology components, such as computer chips for defense systems and airplane equipment, were among the top seized commodities in IPR investigations.

Maturing and Strengthening the Homeland Security Enterprise

Maturing and strengthening the homeland security enterprise – the collective efforts and shared responsibilities of federal, state, local, tribal, territorial, nongovernmental, and private-sector partners, as well as individuals, families, and communities – is critical to the Department's success in carrying out its core missions and operational objectives. This includes enhancing shared awareness of risks and threats, building capable communities, and fostering innovative approaches and solutions through cutting-edge science and technology, while continuing to foster a culture of efficiency, sustainability in accordance with EO 13514 and fiscal responsibility and streamline management across the Department.

While the Department proposes significant cuts to administrative support across all components in order to maintain frontline operations, the following activities are supported through the FY 2012 Budget:

St. Elizabeths: $159.7 million is requested for the St. Elizabeths project. This funding enables DHS to complete the Coast Guard Headquarters facility and to continue work on the National Operations Center. The request, however, will defer the FEMA headquarters consolidation.

Transformation and Systems Consolidation (TASC): The FY 2012 Budget proposes $11 million to fund the TASC program, which supports the modernization of the Department's financial, asset, and acquisition management systems – a key priority for the Department and a step towards addressing recommendations on the GAO High Risk list.

Acquisition Workforce: $24.2 million in requested funds will increase the Department's acquisition workforce capacity by 150 positions, including additional systems engineers, program managers, logisticians and business cost estimators, to ensure operational requirements are properly developed and included in DHS contracts and to provide greater oversight and accountability. This too, is consistent with previous recommendations from the Government Accountability Office and Inspector General.

Information Security and Infrastructure: $32.3 million is requested to establish a unified email network for DHS-wide use, and provide Single Sign-On and other capabilities. These activities will leverage technologies to strengthen DHS operations and enhance communications with federal, state, local, and private sector partners.

Coast Guard Housing and Child Care: The health and welfare of military families is the heart of Coast Guard operational readiness. The FY 2012 Budget includes $29 million to address critical housing shortfalls and improve access to affordable, quality childcare. These initiatives will ensure Coast Guard members can maintain both strong families and a high state of readiness.

Conclusion

The FY 2012 budget proposal reflects this administration's strong commitment to protecting the homeland and the American people through the effective and efficient use of DHS resources. As outlined in my testimony today, the Department will continue to build upon past successes in several areas including securing U.S. air, land, and sea borders; safeguarding lawful trade and travel; securing federal networks; and disrupting and dismantling transnational criminal and terrorist organizations that engage in cross-border criminal activity while maximizing every taxpayer dollar we receive.

Thank you for inviting me to appear before you today. I look forward to answering your questions and to working with you on the Department's FY 2012 Budget Request and other homeland security issues.

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1For purposes of comparison to prior year funding levels, funding for Overseas Contingency Operations and National Science Foundation transfers are not included in these figures.